New Jersey New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an Employer Identification number (also known as an EIN or FEIN) if you don’t already have one. The simplest (and preferred way) is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN.”
- Although it is not required, we recommend that you register for this federal tax paying system. Your EFTPS (Electronic Federal Tax Payment System) account will be helpful for you to make tax payments online or view whatever tax filings that have been made on your behalf by Patriot.
- To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of New Jersey Tax Accounts
- You can register online at the New Jersey Online Business Filing and Registration Service.
- Using this registration will allow you to file for state income taxes (SIT), employer unemployment insurance (SUI) and employer disability insurance (SDI).
- The New Jersey new employer SUTA rate is 2.9825% for July 1, 2022 through June 30, 2023.
- For your information, there is also an employer Workforce Development/Supplemental Workforce Fund rate of 0.1175% for UI, Workforce Development/Supplemental funds. However, as a Patriot customer, you do not need to enter this in your tax account settings, as they are automatically calculated for you. To learn more about new employer rates, visit the NJ Department of Labor and Workforce Development.
- There is also a “worker rate” which employees in New Jersey pay as a contribution to the UI and Workforce Development/Supplemental Workforce fund which does not need to be entered in the software. This is automatically calculated.
- All New Jersey new employers (except successors) are assigned new employer rates for the first three calendar years after which a calculated rate is assigned based on employment experience.
- To learn more about SUTA read our article, “What Is SUTA Tax?”
- New employers in New Jersey will use an SDI (aka TDI) rate of 0.5% from July 1, 2022 through June 30, 2023.
- For your information, there is a worker contribution rate for disability also. However, as a Patriot customer, you do not need to enter in this amount as it is calculated automatically for you. To learn more about the NJ Disability insurance rates, visit the NJ Department of Labor and Workforce Development.
- You will then receive an experience rating for each subsequent year you are in business.
- For more information, read, “What Is State Disability Insurance?”
- The city of Newark imposes both payroll taxes and employer taxes, and you will need to register your business if you are affiliated in anyway with the city.
- New employers can register by filling out payroll tax registration form if you are subject Newark payroll tax.
- Contact the City of Newark for more information.
Setting Up Your New Employee:
- Have your employees fill out the required Form I-9.
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “Form I-9 In a Nutshell” and “What Should Be in an Employee File?”
- Employees need to fill out Form W-4, Employee’s Withholding Certificate for federal income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
- Form NJ W-4 is the New Jersey employee withholding allowance certificate for state income taxes (SIT).
- New Jersey employers need to report new hires within 20 days of hire or rehire.
- You can report online through the New Jersey New Hire Directory.
- New Jersey employers with six or more employees must pay employees a minimum wage of $14 per hour for 2023. Seasonal and small employers with fewer than six employees must pay $12.70 per hour for 2023.
- By law you are required to post the minimum wage poster where your employees can read it.
- For more required posters, visit the Department of Labor and Workforce Development.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
Disclaimer: This is not an all-inclusive list for new employers. Check with the federal and state government for additional requirements for employers.
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